Author: BitpushNews Mary Liu

Due to escalating inflation concerns, cryptocurrency exchange-traded products (ETPs) experienced their first net outflow in 19 weeks, as the cryptocurrency market continued to decline.

According to Bitpush data, Bitcoin briefly hit a low of $93,388.83 in intraday trading over the past 24 hours, and as of the time of writing, it has rebounded to above $95,000. Ethereum fell 3% to $2,600, while Solana (SOL) dropped nearly 5%, hitting a low of $163.

Maple Finance CEO Sid Powell stated, "The 3% drop in the cryptocurrency market today is not too surprising—it seems primarily driven by macro factors. Recent inflation reports indicate that inflation will persist, making the likelihood of interest rate cuts in the short term low."

Outflows from Crypto Funds

This pullback coincides with the first net outflow of digital asset exchange-traded products (ETPs) in 19 weeks.

According to the latest CoinShares Digital Asset Fund Flows Weekly Report, there was a significant outflow of funds from digital asset investment products last week, totaling $415 million. This marks the end of a trend that saw a cumulative inflow of $29.4 billion over 19 consecutive weeks.

The report stated, "As investors have been seeking to reduce risk exposure, ETFs ended a 19-week streak of inflows, experiencing net outflows for the first week, which led to selling pressure." CoinShares attributed these outflows to the recent hawkish signals from Federal Reserve Chairman Jerome Powell and higher-than-expected U.S. inflation data.

The report noted that Bitcoin was particularly affected, with outflows amounting to $430 million, reflecting its sensitivity to interest rate expectations. Interestingly, products that short Bitcoin also recorded outflows of $9.6 million.

In contrast, Solana led with inflows of $8.9 million, followed by XRP and Sui with inflows of $8.5 million and $6 million, respectively. Crypto concept stocks attracted inflows of $20.8 million, bringing their total for the year to date to $220 million.

Technical Indicators Suggest Possible Re-Test of $92,000 Support Level

According to an analysis shared by Material Indicators on February 17, Bitcoin may decline further due to the "death cross" that has appeared on the daily chart. A death cross occurs when a short-term moving average crosses below a long-term moving average, typically indicating a weakening price momentum. However, the analysis also pointed out that there is buy order liquidity around $95,000, with $92,000 being a secondary support level, which may help stabilize prices.

Analysis of Binance order book data further supports the view of an upcoming test. Technical charts shared by Material Indicators show significant buy interest around $95,000, while almost all order categories, except for retail traders, have reduced risk exposure. The $92,000 support level indicates that further declines may validate a key support area, laying the groundwork for future price movements.

Traders remain cautious, with many closely monitoring technical signals. The appearance of the death cross suggests a potential long-term downtrend, but some investors view the current conditions as an opportunity to accumulate more Bitcoin. Material Indicators emphasized the importance of strategic planning in such market conditions, advising traders to remain patient and stick to their goals.

Standard Chartered Reaffirms Its $500,000 Bitcoin Price Target

Standard Chartered maintains its $500,000 price target for Bitcoin, citing a changing investor landscape that includes institutions, banks, and sovereign buyers. The bank expects Bitcoin to reach this level before former President Trump's term ends, driven by increased acquisition channels and reduced volatility.

According to Standard Chartered, the purchase volume of spot Bitcoin ETFs in 2024 is projected to be 499,000 BTC, while Strategy has purchased 257,000 BTC. The bank anticipates that institutional inflows will further increase in 2025 but emphasizes the need for new buyers to maintain momentum.

Analysts wrote, "To achieve this target, we need new buyers; bank purchases have been substantial, and now sovereign nations are getting involved."

A key factor supporting this outlook is data from the U.S. Securities and Exchange Commission's 13F filings, which show an increase in Bitcoin positions among banks and hedge funds in the fourth quarter.

Standard Chartered noted, "The types of buyers will gradually evolve, from retail buyers dominating before ETFs, to hedge funds in the early stages of ETFs, and eventually to sovereign investors." Looking ahead, Standard Chartered expects pension funds and central banks to enter the market as long-term institutional investors.

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